an e-procurement overview
TRANSCRIPT
NC E-Procurement @ Your Service
An E-Procurement Overview Department of Administration
Division of Purchase and Contract
Presented to
House Select Committee on E-Procurement
February 15, 2012
Sam Byassee
State Purchasing Officer
Direct line: 807-4533
2
E-Procurement Statutory Authority
§ 143-48.3. Electronic procurement. • Electronic procurement system mandate
• Co-operation of ITS
• University and Community College opt-out until May 2003
§ 66-58.12. Agencies may provide access to
services through electronic and digital transactions;
fees authorized. • Fees approved by OSBM
• Revenue into agency reserve account
• Use only for e-commerce initiatives and projects, with approval
of State CIO and consult. With Joint IT Oversight
3
Electronic Procurement System:
The technology that supports the services
• Ariba Buyer (electronic purchase orders)
• e-Quote marketplace
• Vendor Registration
• IPS (Interactive Purchasing System) – RFP/IFB posting
4
e-Procurement Operation Timeline
Initial implementation
Contract amendment (resolve $ loss due to underuse)
Contract amendment (fixed fee)
Upgrade
Expiration
Oct. 2001 Jun. 2004 Oct. 2009 Jul. 2012 Dec. 2012
5
System Usage
• 234 different NC entities now use E-Procurement
• 30 state agencies
• 16 institutions and hospitals
• 58 community colleges
• 115 K-12 local school systems (LEAs)
• 15 local governments
• More than 14,000 total users
• More than 45,000 registered vendors
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41%
26%
10%
23%
0% 0%
NC E-Procurement Spend FY08-FY11
NCAS State Agencies Dept. of Transportation
Community Colleges K-12 Local School Systems (LEAs)
Local Governments Universities/Colleges
7
Supporting Applications
Ariba
Interfaces
• IPS • eQuote • Vendor Registration • Reporting
• NCAS • SAP • Community Colleges • LEAs (4)
Total of 178
8
Procurement Functions
• Vendor search
• eRequisitions
• Catalog search
• Approval flow
• eQuote
9
Management Functions
• Vendor registration
• Workflow management
• Compliance and accountability
• Data aggregation and reporting
10
Electronic approval flow facilitates an effective procurement approval process for the State. It allows procurement professionals to focus on more critical strategic initiatives, while it facilitates the proper authorizations before goods and/or services are purchased.
Purchasing
Agent
Commodity
Approver
On Behalf
Of Watcher
Rule
Supervisor
(Starts
Mgmt
Chain)
CPO Financial
Approver
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Compliance and Accountability
• procurement method field requires justification at the line item
level of basis for purchase (from designated vendor at
designated price) e.g., State Term Contract, agency bid,
eQuote, sole source, etc…
• Approval process automatically generated from Agency rules
(based on dollar thresholds, agency management structure,
commodities, and State oversight rules)
• audit trail (what is changed about any requisition by whom and
at what time
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High Level Purchasing Flow
Consolidate
&
Report
Receive
Items/
Services
Issue
Purchase
Order
Approve
Requisition
Create
Requisition
Data
Aggregation
and Analysis
Compliance and Accountability
Through Process Control
Shop State Term Contract catalogs
Conduct on-line quotes
Record formal solicitation results
Rules based on: $$ amount Type of
purchase Contract source Source of
payment Agency
purchasing oversight
Statewide purchasing oversight
Purchase order issued electronically
All details of steps from requisition to purchase order retained
Receipts compared against purchase order before payment
All data consolidated for effective analysis of purchasing patterns
Confirm
Fund
Availability
Check for fund availability against designated accounting code
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House Select Committee on e-Procurement
February15, 2012
Ari
ba
Bu
yer
N
CA
S Pre-
Encumber Funds
Generate PO
Encumber Funds
Create Receipt
Create Invoice
Funds Drawdown
Pay Supplier
Submit Requisition
Dispatch PO
Supplier
Need for
items
Create Requisition
Fax Email ASN
Available requisition options are: - State Contracts (Catalogs) - Punchout Websites - eQuote - Non Catalog
Nightly Updates
Vendor Master
Vendor Registration
Approved Orders, Cancellations & Changes
Approve Requisition
Vendor Staging
Adjust Pre-
Encumbrance
Requisition Changed
Requisition PO
Asy
nch
ron
ou
s
Asy
nch
ron
ou
s
Asy
nch
ron
ou
s
Receipt
Accounting Information
Accounting Information
Ariba Buyer / NCAS Data Transfer
14
House Select Committee on e-Procurement
February15, 2012
Ari
ba
Bu
yer
N
CA
S
Pre- Encumber
Funds
Generate PO
Encumber Funds
Create Receipt
Create Invoice
Funds Drawdown
Pay Supplier
Submit Requisition
Dispatch PO
Supplier
Need for
items
Create Requisition
Fax Email ASN
Available requisition options are: - State Contracts (Catalogs) - Punchout Websites - eQuote - Non Catalog
Nightly Updates
Vendor Master
Vendor Registration
Approved Orders, Cancellations & Changes
Approve Requisition
Vendor Staging
Adjust Pre-
Encumbrance
Requisition Changed
Requisition PO
Asy
nch
ron
ou
s
Asy
nch
ron
ou
s
Asy
nch
ron
ou
s
Receipt
Accounting Information
Accounting Information
Ariba Buyer / NCAS Data Transfer
Electronic
Bids
Electronic Document Repository
Electronic
Payments
Business
Intelligence/
Spend Analysis
15 15
System Demo
System Demo